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Economics and Business - Coggle Diagram
Economics and Business
4 Factors of Production
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Enterprise - The ability of a person or a group of people to gain a profit from the combination of labour, land and capital
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Economic Systems
Traditional Economy - A traditional economy is an economy where people make their decisions off of their customs and beliefs, these decisions are not usually made using money instead in this type of economy they trade for the items they need. In a traditional economy most people do the exact same job that their parents did and just continue the life cycle.
Command Economy - In a command economy the government controls everything, from the ownership of the property to the massive economic decisions that have to be made. The government decide what workers wages are and the prices of goods and services.
Market Economy - A market economy is built around supply and demand, workers wages are based off of profits and prices and economic decisions are made by competing businesses. The government cannot interfere in this economic system.
Mixed Economy - A mixed economy is a combination of a command economy and a market economy, the businesses can determine what to do and how to do it but the government has some regulations that stop businesses from exploiting people.
Australian Economy - The Australian economy is a mixed economy. Australia has the 13th biggest economy in the world with it's main import being machinery and its largest export being iron ore
Needs and Wants
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Wants - A want is anything that is not necessary for your survival but you still think you require it such as: a phone
Markets
Market - A market is not a physical location but a place where producers and consumers go to exchange stuff of value
Oligopoly Market - There is a small amount of producers in an oligopoly market, these producers all compete against each other for the consumers
Monopsony Market - In a monopsony market the entire industry is controlled by a single buyer who influences the decisions of the producers
Perfect Competition Market - In a perfect competition market there is an equal measure of producers and consumers.
Monopoly Market - A monopoly market is a market controlled by one person or one group of people, the people that control the market make the decision on the price and quality of the product without fear of competitors
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Opportunity Cost - The opportunity cost of the item is the loss of choosing that item over an alternate option
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